Patience and Creativity. Fundraising in Challenging Times. Deacon Larry Vaclavik Principal and Partner Dini Partners.
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1 Patience and Creativity Fundraising in Challenging Times Deacon Larry Vaclavik Principal and Partner Dini Partners
2 Context Challenging Times Economic Social Institutional Personal 2
3 Impact Retracting Redirecting Realigning Renewing 3
4 Stimulus A plan to move us To action To investment To living into a positive future 4
5 At the Heart of the Crisis Two-fold crisis External Internal Crisis of confidence Where we stand What we are committed to 5
6 What We Seek A Foundation An unshakeable foundation Those enduring truths Patterns of behavior Hold on as we move from known to unknown 6
7 Unshakeable Foundations Truth transparency and integrity Proportion right size goals & staffs Mission the basis of merit Excellences mission delivery Philanthropy genuine partnership 7
8 Some Seek the Superficial How do we retain donors? How do we maintain our goals? How do we avoid restructuring? 8
9 The Deeper Goals Patience Creativity Humility Honesty Courage 9
10 Redefining Focus Patience Relationship care over productivity Creativity Engagement / manipulation Humility The good of others / the good of self 10
11 Redefining Focus Honesty Letting the facts speak / making the facts speak for our purposes Courage Conviction / circumstance 11
12 What Do We Hear Report after report Giving goes up in crisis Giving actually grows in crisis 12
13 What We Need to Hear The reality Rate of growth collapses Literal retraction of giving for most Redirection of giving Realignment of relationships The role churches, synagogues, mosques and temples play in times of crisis 13
14 Big Events Pearl Harbor 9/11 Hurricane Katrina The recession of
15 Dini Partners Giving 2009 Survey Speaks about giving Donor relationships The importance of our work 15
16 Where is the Recovery? 2% Midyear % Late % In % Simply don t know 16
17 Implications Stability may come by late & 2010 could be worse Any real recovery will be very slow Taking years Impact on giving expectations 17
18 Giving Expectations 62% 34% 5% Giving will decrease - Decrease 50% - Decrease 25% - Decrease will follow market Will give as much or more Committed to increased giving 18
19 Motivations 64% 33 % 50% Existing relationships For those in need Will give to fewer orgs 19
20 Factors with Greatest Weight 1. Relationship, relationship, relationship 2. Institution in need / serving those in need 3. Institutional mission mission focus 20
21 Least Influence 1. Who asked for the gifts 2. Dollar amount requested 21
22 Kinds of Giving 65% 38% 36% 12% Realigning to focus on operations and annual giving On capital and new construction Rescue funding Endowment 22
23 Conclusions Economic environment is beyond our models Be careful about recovery predictions Take seriously - recovery will take time Growth in asset accumulation and giving will not equal that of the 1990s or early 2000s anytime soon Expect slow recovery through
24 Conclusions People handle stress & risk differently Some are radical optimists Some react to threats with fear Some rely on themselves more Others reach out, talk, seek affirmation 24
25 Conclusions Our donors, CEOs and trustees are people Do not think one size fits all Sensitivity & empathic listening For some, Forge ahead! For others, Be careful. Hold back. 25
26 Recommendations for 2009 Spend time with your donors. Listen to major donors. Ask your donors to share their experiences. Respond to the unique and timely reactions, expectations, stories of your donors. 26
27 Recommendations for 2009 Transparent communication Don t cry wolf Don t hide the reality Over-communicate rather than under-communicate 27
28 Recommendations for 2009 Continue to campaign Continue to plan Continue to organize Continue to ask About programs, projects, goals that advance mission! Beware of the new 28
29 Recommendations for 2009 Steward resources well Think lean Realign programming as your donors are realigning Realign your fundraising goals 29
30 Recommendations for 2009 Avoid desperation and demands Don t push donors Listen and don t ignore reactions Ask of your institution what you would ask of a public company or bank in today s environment 30
31 Recommendations for 2009 Build new relationships Focus on individuals, families Foundations will be more cautious If you serve the poor, this is your time to make yourself known 31
32 The Bottom Line Attend to existing relationships with care Plan for mission and efficiency Ask with courage and humility Be patient and creative 32
33 A Word of Hope This recession will pass The question for us as NPOs is what we will have learned About our role in society About our need to be lean About the importance of genuine relationships - partnerships 33
34 Contact Information Deacon Larry Vaclavik Principal and Partner Dini Partners Dini Survey Report on Giving in 2009 available at 34
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